In a critical move to avoid a government shutdown, lawmakers approved a short-term federal spending package, signed by former President Trump on Saturday, that secures funding for federal programs through September. While the bill addresses some key healthcare priorities—especially telehealth—it fails to protect physicians from Medicare payment cuts, drawing sharp criticism from medical groups.

The spending package grants a temporary extension for telehealth services, including hospital-at-home programs, set to expire at the end of March. While advocates were pushing for a longer extension, the short-term approval ensures continued virtual care access for millions of Americans, at least for now.

“This is a big victory for telehealth, and a huge relief for patients and clinicians in every state and region of the United States, especially those in underserved communities,” said Kyle Zebley, senior vice president of public policy for the American Telemedicine Association (ATA).

Despite the win, Zebley emphasized the uncertainty plaguing the sector. “The shortened duration of the extensions included impedes long-term certainty,” he noted, underscoring the difficulty healthcare organizations face in planning and investing in the future of telehealth.

Telehealth supporters were particularly disappointed after Congress appeared poised late last year to approve a two-year extension for most telehealth programs and five years for hospital-at-home, only to see those provisions stripped in a last-minute deal.

While telehealth secured short-term stability, physicians were left in the cold. The spending bill did not include a fix for the planned 2.8% cut in Medicare payments to doctors slated for 2025—a move many in the medical community describe as a severe blow to the healthcare system.

“The passage of the [continuing resolution] without a Medicare physician payment fix represents a massive congressional failure and blatant abdication of duty,” said Anders Gilberg, senior vice president of the Medical Group Management Association (MGMA).

Doctors have warned that continued cuts push independent practices to close and discourage providers from accepting Medicare patients, which could severely limit access to care for seniors and vulnerable populations.

Both the MGMA and the American Medical Association (AMA) are urging Congress to implement permanent reforms, including:

• Tying physician payment updates to the Medicare Economic Index
• Accounting for inflation
• Overhauling budget neutrality policies

“Medicare is broken,” said AMA President Dr. Bruce A. Scott, pointing to the link between financial stress and physician burnout. “As these cuts pile up year after year, more and more physicians are closing their practices, leaving patients without access.”

As healthcare providers brace for future budget negotiations, the bill highlights a growing divide between temporary fixes and long-term solutions, and the urgent need for structural reform in the nation’s healthcare financing.